GST is a tax of 10 per cent on most goods and services in Australia. If you are a registered business, GST will be collected by you on most goods and services you sell or supply in the course of your business and GST will be included in the price of the things you purchase for your business.

However, you will be entitled to claim input tax credits from the ATO for the GST in the expenses if you are registered for GST. While the liability for remitting the GST rests with GST-registered entities, the economic cost is borne by the end consumer.

Entities carrying on an enterprise must register for GST if their annual turnover is at or above the registration turnover threshold of $50,000. This threshold is $100,000 for non-profit organisations. Entities below this threshold may choose to register for GST.

If you are not registered for GST, you cannot include GST on anything you sell or provide. You are also unable to claim back any GST included in the price you pay for goods or services used in your business.

For more information see the Guide to the Goods and Services Tax for Small Business

To get in touch with a JKM Accountants GST specialist click here.